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2016 (4) TMI 637 - PATNA HIGH COURT

2016 (4) TMI 637 - PATNA HIGH COURT - TMI - Addition u/s 40A(3) - Held that:- Submission of the Revenue suffers from a fallacy as it does not take into account the fact that the assessment involved in the present matter is for the year 2007-08, whereas sub-section (3) of Section 40A of the Act has undergone an amendment with effect from 01.04.2009, i.e., for the assessment year 2009-10 onwards, under which it is now provided that no deduction shall be allowed in respect of an expenditure incurre .....

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ucher exceeding ₹ 20,000/-. Thus, it was not open to the Assessing Officer to have aggregated the said payment.

Moreover, the extant provision for the said assessment year also had a proviso by which even if the payment in cash exceeded ₹ 20,000/-, then in such cases and under such circumstances as may have been prescribed, having regard to the nature and extent of banking facilities available, considerations of business expediency and other relevant factors, the disallowa .....

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d the said explanations also. - Decided in favour of assessee - Misc Appeal No. 30 of 2012 - Dated:- 17-2-2016 - Ramesh Kumar Datta And Sudhir Singh, JJ. For the Appellant : Mr. Rishi Raj Sinha, Senior Standing Counsel Mrs. Archana Prasad, Junior Standing Counsel JUDGMENT ( Per: Honourable Mr. Justice Ramesh Kumar Datta ) Heard learned Senior Standing Counsel for the appellant Income-tax Department. The appeal has been filed against the order dated 11.08.2011 passed by the Income-tax Appellate T .....

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the additions made by the Assessing Officer were deleted. Aggrieved by the same, the Revenue went in appeal before the Income-tax Appellate Tribunal, Patna Bench, Patna which, by the impugned order dated 11.08.2011, has dismissed the appeal. As many as eight purported substantial questions of law are sought to be raised before us by learned counsel for the Department. However, after hearing learned counsel for the appellant and going through the order of the Tribunal, we find that barring one a .....

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wn to be contrary to the material on the record, no question of law can flow from the said finding. The only question of law raised before us by learned Senior Standing Counsel for the Income-tax Department is with regard to the applicability of the provisions of Section 40 A (3) of the Income Tax Act, 1961 and it is submitted that the Tribunal and C.I.T. (Appeals) have wrongly set aside the addition made by the Assessing Officer on that count to the extent of ₹ 47, 73,775/- as the aggrega .....

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onwards, under which it is now provided that no deduction shall be allowed in respect of an expenditure incurred by the assessee in which aggregate payment made to a person in a day, otherwise than by an account payee cheque drawn on a bank or account payee bank draft, exceeds ₹ 20,000/-. Prior to that the provision in existence merely provided for expenditure in respect of which payment exceeding ₹ 20,000/- was made and there was no provision regarding aggregate of payments to a per .....

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